Wednesday morning brought a welcome bounce to U.S. stock futures after Tuesday's pullback left investors wondering if the recent rally had finally run out of steam. Futures across major benchmark indices ticked higher in early trading, though the real action is still ahead with Nvidia's earnings report and the Federal Reserve's October meeting minutes both dropping today.

The setup is fairly straightforward. Markets took a breather Tuesday after a solid run, but nothing that screams panic. Now investors are positioned somewhat cautiously, waiting to see if Nvidia Corp. (NVDA) can justify its astronomical valuation and whether the Fed minutes reveal any surprises about policymakers' thinking on future rate cuts.

The 10-year Treasury bond was yielding 4.12%, while the two-year note sat at 3.58%. More interesting is what the CME Group's FedWatch tool is telling us: markets are pricing in only a 46.6% likelihood that the Federal Reserve will cut rates at its December meeting. That's essentially a coin flip, which tells you how uncertain the rate path has become.

Futures Snapshot

Here's how futures were looking in early trading:

The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which track the S&P 500 index and Nasdaq 100 index respectively, were both higher in premarket trading on Wednesday. The SPY climbed 0.22% to $661.56, while the QQQ advanced 0.24% to $597.74.

The Nvidia Show

Let's be honest: Nvidia is the main event today. The chip giant has become so central to the AI narrative and such a massive component of major indices that its earnings can move the entire market. Nvidia (NVDA) shares rose 0.42% in premarket trading as Wall Street prepared for results after the closing bell.

Analysts are expecting earnings of $1.25 per share on revenue of $54.84 billion. Those are eye-watering numbers for any company, but especially for one that's seen its valuation skyrocket on AI enthusiasm. The question isn't whether Nvidia will beat expectations, which it usually does, but whether the guidance will be strong enough to satisfy investors who've bid the stock to nose-bleed levels.

From a technical perspective, Nvidia maintains a stronger price trend over the long and medium terms but shows weakness in the short term, according to market data analysis. The stock also carries a solid quality ranking, which makes sense given its dominant position in AI chips and consistently strong execution.

Movers and Shakers

Constellation Energy Powers Up

Constellation Energy Corp. (CEG) was the morning's big winner, surging 3.49% in premarket trading after securing a $1 billion Department of Energy loan to restart the Crane Clean Energy Center. The project is expected to create 3,400 jobs, which is substantial for any single facility.

The nuclear energy angle is interesting here. As AI data centers consume ever more electricity, nuclear power is getting a fresh look as a reliable, carbon-free baseload power source. Constellation's ability to bring old nuclear facilities back online could position it well for this demand surge.

Technically, Constellation Energy has maintained a weaker price trend over the short term, but shows strength in the medium and long terms, with a moderate value ranking. The recent pullback might actually represent an opportunity for investors who believe in the nuclear renaissance story.

DoorDash Gets an Upgrade

DoorDash Inc. (DASH) jumped 2.20% after Jefferies upgraded the stock from 'hold' to 'buy.' The timing was fortuitous, as DoorDash also announced a partnership with Family Dollar to offer on-demand delivery of convenience items, household goods, and other everyday products at low prices.

The Family Dollar deal expands DoorDash's reach into the discount retail space, potentially opening up a new customer base that prioritizes value over speed. It's a smart move as food delivery growth moderates and the company looks for new revenue streams.

That said, DoorDash maintains a weaker price trend across short, medium, and long terms, though it does sport a strong growth ranking. The stock has struggled to find its footing as investors question whether the delivery economics ever really work at scale.

Baidu's Revenue Problem

Baidu Inc. (BIDU) slipped 2.50% despite beating both topline and bottom line expectations in its earnings report. The problem? Its online marketing revenue, essentially its ad business, dropped 18% year-over-year to $2.16 billion. That's a steep decline that raises questions about the health of China's digital advertising market.

Baidu has been trying to pivot toward AI and autonomous driving, but advertising remains a core revenue driver. An 18% decline suggests either intense competition, economic weakness in China, or both. The stock maintained a weaker price trend over the short term but shows strength in the medium and long terms, with a strong value ranking that reflects its depressed valuation.

Target in the Crosshairs

Target Corp. (TGT) was 0.034% higher in premarket trading ahead of its earnings report before the opening bell. Analysts expect earnings of $1.72 per share on revenue of $25.34 billion.

Target's report will offer a crucial read on the American consumer heading into the holiday shopping season. The retailer has struggled with inventory issues and changing consumer preferences, and its stock price reflects those challenges. Target maintains a weaker price trend over the short, medium, and long terms, with a poor quality ranking that suggests fundamental concerns beyond just cyclical weakness.

Tuesday's Trading Action

To understand Wednesday's setup, it helps to know what happened Tuesday. Most S&P 500 sectors actually finished positively, but the index overall fell 0.83% because the weakness was concentrated in the heavily weighted information technology and consumer discretionary sectors.

Energy, health care, and real estate stocks recorded the strongest gains, which is interesting because those aren't typically the leadership groups in a robust bull market. That rotation can signal either a healthy broadening of market strength or a defensive shift as investors get nervous about high-flying tech stocks.

The fact that the Russell 2000 rose 0.31% while the large-cap indices fell is noteworthy. Small caps often outperform when investors expect economic acceleration or when they're rotating out of expensive growth stocks into cheaper value plays.

What the Experts Are Saying

Professor Jeremy Siegel, the Wharton economist known for his bullish long-term market view, maintains a constructive outlook despite recent volatility. He asserts that the "macro still argues for resilience rather than recession" and doesn't believe the market has entered a bear cycle.

That said, Siegel remains critical of what he calls the Federal Reserve's "misguided" hawkishness, particularly regarding inflation drivers that don't respond to interest rate changes. His argument is that the Fed is fighting the wrong battle by staying restrictive when much of the current inflation stems from supply-side issues rather than excess demand.

Siegel anticipates the Fed will shift to a "clearer easing bias into Q1" if economic activity continues to cool. But he's also warning investors about valuations, particularly in the U.S. tech sector. His advice: investors "should not bank on further multiple expansion doing the work."

Instead, Siegel suggests "selective quality-value tilts" and highlights international opportunities in Japan and Europe, where valuations are significantly cheaper than in the U.S. It's a reasonable take, given that U.S. stocks are trading at historically elevated multiples while European and Japanese equities offer better value.

Siegel views the consumer as the "fulcrum" for near-term performance. While he acknowledges a "textbook 5-10% correction is in play" if consumer resilience fades, he affirms he would "be a buyer into that magnitude of weakness." That's the mark of a long-term bull who sees pullbacks as opportunities rather than the start of something worse.

Today's Economic Calendar

Several important data releases hit Wednesday, giving investors plenty to digest beyond just earnings reports. November's Philadelphia Fed manufacturing survey data, October's housing starts and building permits data, and August's U.S. trade deficit data will all be released by 8:30 a.m. ET.

The big one comes at 2:00 p.m. ET when the Federal Reserve releases the minutes of its October FOMC meeting. Markets will parse every word for clues about the Fed's thinking on inflation, employment, and the path of future rate cuts. With only a 46.6% probability priced in for a December cut, any hint of dovishness could spark a rally.

Commodities, Currencies, and Crypto

Crude oil futures were trading lower by 0.46% in the early New York session, hovering around $60.39 per barrel. That's a significant decline from recent highs and reflects concerns about global demand, particularly from China.

Gold spot price rose 0.88% to trade around $4,103.63 per ounce. That's well below its record high of $4,381.60 per ounce, but still elevated by historical standards. Gold's strength reflects ongoing uncertainty about monetary policy and geopolitical risks.

The U.S. Dollar Index spot was 0.15% higher at the 99.6960 level, showing modest strength despite the uncertain rate outlook.

Meanwhile, Bitcoin (BTC) was trading 0.10% higher at $91,283.92 per coin. The cryptocurrency has been consolidating after its recent surge, with investors waiting to see if it can break through to new highs or if profit-taking will push it lower.

Global Markets

Asian markets closed lower on Wednesday, with some notable exceptions. China's CSI 300 and India's NIFTY 50 indices managed gains, but Hong Kong's Hang Seng, Japan's Nikkei 225, Australia's ASX 200, and South Korea's Kospi indices all fell.

The divergence between China's domestic A-shares (which rose) and Hong Kong's H-shares (which fell) is interesting and often reflects different investor bases and sentiment. Domestic Chinese investors sometimes have a different view of the economy than international investors trading in Hong Kong.

European markets were also lower in early trade, continuing the cautious tone that started in Asia. With the Fed minutes and Nvidia earnings still ahead, it makes sense that global investors are waiting on the sidelines rather than making big bets.

The bottom line for Wednesday is straightforward: it's all about Nvidia and the Fed. Everything else is just noise until we get those two key pieces of information. Buckle up.